Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/51527 
Year of Publication: 
2006
Series/Report no.: 
Working Paper No. 555
Publisher: 
Inter-American Development Bank, Research Department, Washington, DC
Abstract: 
This paper evaluates the effectiveness of market-based approaches in the provision of public-sponsored training programs. In particular, we study the link between training quality and labor earnings using a Peruvian program that targets disadvantaged youths. Multiple proxies for training quality are identified from bidding processes in which public and private training institutions that operate for profit compete for limited public funding. Using difference-in-differences kernel matching and standard regression-based approaches, we find that beneficiaries attending highquality training courses have higher average and marginal treatment impacts. These earnings differentials are larger for females rather than males, and are larger in the medium term rather than in the short run. External validity was assessed by using five different cohorts of individuals over an eight-year period.
Subjects: 
Training
Quality
Earnings
Bidding
Matching Methods
JEL: 
I38
H43
C13
C14
Document Type: 
Working Paper

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